CARBON CREDITS FOR SUB-SAHARAN AFRICA - lumes

project developer. As stated by co2balance, for instance, the company only invests inprojects that are at least 50% funded by carbon-offset payments (2009).Generated ERs and co-benefits are subject to the third party verification in themajority of cases. Projects are validated by UN-accredited monitoring agencies suchas the SGS, TÜV or DNV or one of the voluntary standards or independent experts 8 .A participatory methodology on carbon assessment and monitoring program by localcommunities has been established within one of the projects. Corporate and individualbuyers (PC, 2009b), social institutions, governmental agencies, retailers and creditaggregators purchase the credits.Local communities act as service providers generating carbon credits throughprojects and in afew cases ascredit owners.Credits in themajority of casesstudied areowned either bythe internationalprivate company,NGO or nonprofitwho act asa projectdeveloper orretailer. A localprivate company was identified as 100% owner of the generated carbon credits in asingle case of Tanzania Carbon project only. There has been one identified case ofcommunity owned business in a form of established micro-enterprise. Only in a fewprojects local communities receive direct payments originating from their projectrelatedactivities. For instance, TIST program in Kenya, Tanzania and Uganda,ensures quarterly payments to the farmers on the basis of the number of trees theymanage. Monduli Forest Project in Tanzania also ensures direct payments to thecommunities. Such ownership model can be attributed to the relatively early stage ofmarket development in the region. It is seen as a necessity for upfront investment,however, there are few cases indicating the early transition to the local ownershipapproach. Thus, for instance, co2balance, a UK-based project developer and creditowner, is currently working on establishment of micro-franchise model in Tanzaniaand Kenya, ensuring that carbon credits generated reward direct beneficiaries (PC,2009a). Another example of project benefits distribution is community trust fundfinance established to develop infrastructure in the community, such as schools andhealth posts establishment in Mozambique. Likewise, there are precedents of trust8 There are few examples of verification accomplished by the independent panel of experts. In the case of EritreaEfficient Wood Stoves Project (Climate Mundi) verification of reductions is done by Berkley Laboratory, projectsdeveloped by Blue Venture rely on TICOS independent verification and management service and are example ofin-house verification.27